It’s an underpublicised truth that a Whiston residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Whiston property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining dips below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Whiston will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold residencies in Whiston with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Whiston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Half a year ago Rory, came very close to the 80-year mark with the lease on his one bedroom flat in Whiston. Having bought his property two decades ago, the unexpired term was of no interest. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Rory was able to extend his lease just ahead of time in September. Rory and the landlord ultimately agreed on sum of £5,000 . If the lease had slipped lower than 80 years, the price would have become more costly by at least £1,025.
Mrs U Petit acquired a ground floor flat in Whiston in September 2012. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Similar homes in Whiston with a long lease were worth £290,000. The mid-range amount of ground rent was £60 billed every twelve months. The lease ran out on 2 February 2105. Given that there were 80 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.
Last Summer we were phoned by Ms H Martínez , who moved into a garden apartment in Whiston in April 2006. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Similar premises in Whiston with a long lease were valued around £200,800. The average ground rent payable was £65 invoiced annually. The lease concluded on 21 September 2085. Given that there were 60 years left we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of costs.